Exam 5: Advanced Linear Programming Applications

Consider a two-person,zero-sum game where the payoffs listed below are the winnings for Company X.Identify the pure strategy solution.What is the value of the game?

Revenue management methodology can be applied in the case of nonperishable assets.

Revenue management methodology enables an airline to maximize the number of full-fare seats it sells on each flight.

In game theory,the player seeking to maximize the value of the game selects a maximax strategy.

In a two-person,zero-sum,pure-strategy game,it can be advantageous for a player to switch from their strategy when the player discovers the other player's strategy in advance.

The goal of portfolio models is to create a portfolio that provides the best balance between risk and return.

In data envelopment analysis,the percentage of an individual operating unit's resources that are available to the composite operating unit is the

To develop a portfolio that provides the best return possible with a minimum risk,the linear programming model will have an objective function that

In a data envelopment model,dual prices inform reservation agents of the revenue loss associated with overbooking each origin-destination-itinerary fare (ODIF).

Upon completion of a DEA model,all operating units that are relatively efficient are not necessarily identified.

DEA is used to measure the relative efficiency of two (or more)units in different industries,such as a bank and a school.

Modern revenue management systems maximize revenue potential for an organization by helping to manage

Portfolio manager Max Gaines needs to develop an investment portfolio for his clients who are willing to accept a moderate amount of risk.His task is to determine the proportion of the portfolio to invest in each of the five mutual funds listed below so that the portfolio provides an annual return of no less than 3%.Formulate the appropriate linear program.​

Hervis Car Rental in Austin,Texas,has 50 high-performance Shelby-H Mustangs in its rental fleet.These cars will be in greater demand than usual during the last weekend in July when the Central Texas Mustang Club holds its annual rally in Austin.At times like this,Hervis uses a revenue management system to determine the optimal number of reservations to have available for the Shelby-H cars.Hervis has agreed to have at least 60% of its Shelby-H Mustangs available for rally attendees at a special rate.Although many of the rally attendees will request a Saturday and Sunday two-day package,some attendees may select a Saturday-only or a Sunday-only reservation.Customers not attending the rally may also request a Saturday and Sunday two-day package,or make a Saturday-only or Sunday-only reservation.Thus,six types of reservations are possible.The cost for each type of reservation is shown here. The anticipated demand for each type of reservation is as follows: Hervis Car Rental would like to determine how many Shelby-H Mustangs to make available for each type of reservation in order to maximize total revenue. a.Define the decision variables. b.Formulate a linear programming model for this revenue management application.

Revenue management methodology was originally developed for a(n)

In portfolio models,risk is minimized by diversification.

DEA will show all but one operating unit to be relatively inefficient in the case where an operating unit produces the most of every output and also consumes the least of every input.

If the inputs of the composite unit in DEA are greater than the inputs for an individual unit,then the composite is more efficient.

For a two-person,zero-sum,mixed-strategy game,it is necessary to solve the LP for each player in order to learn both players' optimal strategies.